New Limits on Retirement Accounts

Good news for retirement savers: Starting next year, Uncle Sam will let you shove a little more into your nest egg.

The bad news: The reason for the change is that the cost-of-living index has met statutory thresholds that trigger the adjustment, according to the Internal Revenue Service.

Here are some details of how the limits change in 2012:

- The contribution limit for 401(k), 403(b) and most 457 plans, along with the federal government’s Thrift Savings Plan, increases to $17,000 from $16,500. (You can still put in an extra $5,500 if you are at least 50 years old.)

- The deduction for taxpayers making contributions to a traditional individual retirement account is phased out for single filers and heads of households covered by a workplace retirement plan if they have modified adjusted gross incomes between $58,000 and $68,000, up from $56,000 and $66,000.

- For married couples filing jointly, in which the spouse making the IRA contribution is covered by a workplace retirement plan, the new income phase-out range will be $92,000 to $112,000, up from $90,000 to $110,000.

- For an IRA contributor not covered by a workplace retirement plan and married to someone who is covered, the deduction will phase out with income between $173,000 and $183,000, up from $169,000 and $179,000.

- The income-phase-out ranges are higher for Roth IRA contributions as well, along with the retirement-savings credit for low- and moderate-income workers.